Copper Fox Metals : Announces Third Quarter Results

CALGARY, ALBERTA--(Marketwired - Sep 23, 2014) - Copper Fox Metals Inc. ('Copper Fox' or the 'Company') (TSX VENTURE:CUU) is pleased to announce its third quarter operating and financial results as well as a summary of activities completed during the quarter. Copper Fox had a comprehensive loss for the quarter of $1,004,128 ($0.00 income per share). The Company also incurred $2,317,701 in expenditures toward furthering the exploration of its Van Dyke copper project in Arizona. Copies of the financial statements, notes and related management discussion and analysis may be obtained on SEDAR at www.sedar.com, the Company web site at www.copperfoxmetals.com or by contacting the Company directly. The technical information provided in this news release has been previously disclosed and are available on SEDAR. All amounts are in Canadian dollars unless otherwise stated.

Highlights:

Schaft Creek Project

The Schaft Creek Joint Venture approved a 2014 program consisting of a comprehensive series of studies to review all aspects (including metallurgical, pit slope design, geological modelling and environmental) of the Schaft Creek project. The 2014 field mapping and core re-logging program to collect additional structural information for pit slope design purposes and to update the geological model for the Schaft Creek deposit was completed by the end of August. The incorporation of this information into the Schaft Creek data base is in progress. Environmental monitoring studies will also continue through 2014. The 2014 Schaft Creek program is estimated to cost approximately $2.5 million.

Van Dyke Copper Project

The objective of the 2014 program for the Van Dyke oxide copper deposit is to complete a Preliminary Economic Assessment ('PEA') before the end of 2014. To complete the PEA; verification drilling; metallurgical test work, environmental baseline and surface water hydrology studies, fluid mechanics, geochemical characterization of the lithologies surrounding the deposit and scoping level engineering studies are required.

During the quarter, the six hole (3,211.7m) diamond drilling program on the Van Dyke oxide copper deposit was completed. Subsequent to the end of the quarter, the analytical results for the six holes were received and all holes intersected broad intervals of copper mineralization. Analytical results (using a 0.05% copper cut-off) for total copper and soluble copper content of the six holes are listed below. The cut-off grade used is in line with the cut-off grade used on other similar advanced oxide copper deposits in Arizona.

Note: The core intervals listed in the above tables do not represent true widths.

During the quarter, MMTS, Knight Piesold Ltd., Greenwood Environmental Inc., SGS Metcon/KD Engineering and Southwest Exploration Services, LLC (downhole geophysical surveys) worked on compiling the data collected on the Van Dyke oxide copper deposit during the recent drilling program.

Carmax Mining Corp.

On May 29, 2014 the Company closed a Subscription Agreement with Carmax whereby Northern Fox acquired via a non-brokered private placement, 20,000,000 units of Carmax for an aggregate subscription price of $1,000,000. Units were subscribed for a price of $0.05 per Unit and consist of one previously unissued common share of Carmax and one common share purchase warrant ("Warrant"). Northern Fox holds approximately 42.09% of the outstanding shares of Carmax. Each Warrant is exercisable until May 29, 2016 and entitles Northern Fox, on exercise, to purchase one additional common share of Carmax at a price of $0.075 per share (see News Release dated May 29, 2014).

During the Quarter, Carmax completed both ground and airborne geophysical surveys and commenced a diamond drilling program. Results of the ground geophysical survey are positive and outlined the following:

• The Quantec Titan 24 survey outlined a large chargeability anomaly consisting of two distinct chargeability signatures over a 5,600m long horizontal distance,
• The first signature ranges from 500m to 1,000m wide, is open at depth below the -550m level and covers four of the six zones of mineralization identified to date. This chargeability signature is open to the northwest towards the West zone,
• The copper mineralization reported in the historical (where sampled) and current drill holes in the Pass, Camp, Bornite and East zones of mineralization (horizontal distance of 3,000m) shows a good correlation to the >10 mRad chargeability signature, and
• The second signature occurs on Line-9 and Line-10 (horizontal distance 1,100m) is a distinct >10 mRads chargeability signature that is approximately 1,000m wide and is open at depth below the -550m level. This chargeability signature has not been drill tested and is open to the southeast towards the Far East zone.

The recent Quantec Titan-24 survey results combined with the historical and current drilling results suggest continuity of the copper-molybdenum-gold mineralization between the mineralized zones outlined to date on the property suggesting a single porphyry system. The objective of the 2014 diamond drilling program is to test the continuity of the mineralization between the known zones of mineralization.

Subsequent to the end of the quarter, Northern Fox exercised its top up rights pursuant to the Subscription Agreement and subscribed for an additional 3,386,078 Units at a price of $0.07. Each Unit consists of one common share and one common share purchase warrant. The share purchase warrant allows the holder to purchase an additional common share in the equity of Carmax at a price of $0.09 for a period of two years from the date of the closing the top up subscription.

Sombrero Butte Project

During the quarter, no work was completed on this project. This project has a common boundary with Red Hawk Resources that holds the Copper Creek copper deposit located approximately 3 kilometres from the Sombrero Butte project. Subsequent to the end of the quarter, Red Hawk Resources announced a binding letter agreement with Anglo American with respect to a joint venture on its Copper Creek project whereby Anglo American would spend US $44 million over a five year period to earn a 60% interest and have the right to earn an additional 20% interest in the Copper Creek project by spending an additional US $20 million on or before the seventh anniversary date of the effective date of the joint venture.

While this proposed arrangement has no direct effect on Copper Fox it does have an indirect effect in that it demonstrates that large producing copper companies considers this area to have potential to host commercial copper deposits.

Selected Financial Results

All of the Company's material subsidiaries are wholly owned except for Carmax Mining Corp. ("Carmax") (TSX VENTURE:CVM), of which the Company owns 42.09% of the outstanding common shares. The consolidated financial statements include 100% of the assets and liabilities related to Carmax and include a non-controlling interest representing 57.91% of Carmax's assets and liabilities not owned by the Company

Liquidity and Capital Resources

At July 31, 2014, the Company had working capital of $7,443,990 and a deficit of $17,689,100 and had a comprehensive loss of $1,950,008 for the nine months ended July 31, 2014.

About Copper Fox

Copper Fox is a Canadian based resource company listed on the TSX Venture Exchange (TSX VENTURE:CUU) with offices in Calgary, Alberta and Miami, Arizona. Copper Fox holds a 25% interest in a joint venture (the 'Schaft Creek Joint Venture') with Teck Resources Limited ('Teck') on the Schaft Creek copper/gold/molybdenum/silver project located in northwestern British Columbia. On January 23, 2013, a National Instrument 43-101 Technical Report was prepared by Tetra Tech under the direction of Copper Fox comprising a feasibility study of a 130,000 tonne per day-open pit mine with a Proven and Probable Reserve of 940.8 million tonnes grading 0.27% copper, 0.19 g/t gold, 0,018% molybdenum and 1.72 g/t silver; (recoverable CuEq 0.40 over a 21 year mine life with contained metal of 5,611.7 million pounds of copper, 5.8 million ounces of gold, 363.5 million pounds of molybdenum and 51.7 million ounces of silver.

The Schaft Creek deposit host a Measured and Indicated Resource of 1,228.6 tonnes grading 0.26% copper, 0.017% molybdenum, 0.19 g/t gold and 1.69 g/t silver and a 597.2 million tonne Inferred Resource grading 0.22% copper, 0.016% molybdenum, 0.17 g/t gold and 1.65 g/t silver. The above stated Proven and Probable Reserves for the Schaft Creek project are included within the stated Measured, Indicated and Inferred Resources for this project.

In addition to Copper Fox's 25% interest in the Schaft Creek Joint Venture, Copper Fox holds through Desert Fox Copper Inc. (a wholly owned subsidiary of Copper Fox) and its wholly-owned subsidiaries, 100% interest in the Sombrero Butte copper project in the Bunker Hill Mining District, Arizona and the Van Dyke oxide copper project in the Globe-Miami Mining District, Arizona. Desert Fox Copper Inc. has opened an operations office in Miami, Arizona to complete the work required with the objective of completing a Preliminary Economic Assessment on the Van Dyke copper project. Copper Fox holds through Northern Copper (a wholly owned subsidiary of Copper Fox) a 42.09% equity interest in Carmax Mining Corp. who in turn, owns 100% of the Eaglehead copper/gold/molybdenum project located in northwestern British Columbia. For further information on these projects, please refer to the Company's website at www.copperfoxmetals.com.

On behalf of the Board of Directors

Elmer B. Stewart, President and Chief Executive Officer

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Note Regarding Forward-Looking Information

This news release contains "forward-looking statements" and "forward-looking information" (collectively, "forward-looking information") within the meaning of applicable securities laws. Forward-looking information is generally identifiable by use of the words "believes," "may," "plans," "will," "anticipates," "intends," "budgets", "could", "estimates", "expects", "forecasts", "projects" and similar expressions, and the negative of such expressions. Forward-looking information in this MD&A includes statements about

Desert Fox's future exploration/development activities as well as any equity or working interest acquired in other significant copper projects in North America; the utilization of unallocated cash to advance Arizona copper assets (with the majority of effort on the Van Dyke oxide copper deposit); historical data on the Van Dyke deposit; the efficacy of in-situ recovery method (with respect to the environment, lower capital costs and low operating costs); Desert Fox's objective (including timing) to complete the work required to prepare a Preliminary Economic Assessment technical report on the Van Dyke project to estimate a preliminary valuation; timing of the finalization of the 2014 plans for the Schaft Creek project; the recommendation of a program of optimization studies as well as a field program to update the geological model and better define certain parameters of the Schaft Creek project; the program to verify the historical results from the Van Dyke oxide copper deposit and the completion of a NI 43-101 compliant resource estimation for the Van Dyke copper deposit; collection of hydro geological, metallurgical and geotechnical data required for a Preliminary Economic Assessment on the Van Dyke project; a follow-up 25 hole drilling program for the Van Dyke deposit; timing of the expected drilling program on the Van Dyke project; the upgrade of the Van Dyke historical estimate as a current mineral resource; objective on the Sombrero Butte project to assess its potential to host a large porphyry copper-molybdenum deposit; plans for a deep penetrating geophysical survey (Induced Polarization) to identify chargeability/resistivity anomalies indicative of porphyry copper systems at the Sombrero Butte project; expected capital requirements to continue planned activities; expected capital requirements to continue planned activities; expected sources and the adequacy of required capital resources; geological interpretations and potential mineral recovery processes.

In connection with the forward-looking information contained in this News Release, Copper Fox has made numerous assumptions, regarding, among other things: the geological, metallurgical, engineering, financial and economic advice that Copper Fox has received is reliable, and is based upon practices and methodologies which are consistent with industry standards; and the continued financing of Copper Fox and Desert Fox's operations. While Copper Fox considers these assumptions to be reasonable, these assumptions are inherently subject to significant uncertainties and contingencies. Additionally, there are known and unknown risk factors which could cause Copper Fox's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained herein. Known risk factors include: the Schaft Creek Joint Venture may not result in a Production Decision being made, or the construction of a mine; further exploration and development of the Schaft Creek property may not occur as expected; cash payments to Copper Fox may not be paid by Teck in the quantum or timing expected, or at all; financing commitments may not be sufficient to advance the Schaft Creek project as expected, or at all; proven and probable reserves at Schaft Creek may not be in the quantum as currently expected, or result in economic mining thereof; the possibility that future obligations with respect to the Sombrero Butte property may not be met on a timely basis, or at all; planned activities for the Van Dyke and Sombrero Butte properties many not commence as currently planned, or at all; a current (43-101 compliant) resource estimate, and a Preliminary Economic Assessment may never be obtained by the Company for the Van Dyke property; fluctuations in metal prices and currency exchange rates; conditions in the financial markets and overall economy may continue to deteriorate; uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineral deposits; uncertainty of the metallurgical testwork; the uncertainty of the estimates of capital and operating costs, recovery rates, and estimated economic return; the need to obtain additional financing and uncertainty as to the availability and terms of future financing; the possibility of delay in exploration or development programs; and uncertainty of meeting anticipated program milestones.

A more complete discussion of the risks and uncertainties facing Copper Fox is disclosed in Copper Fox's continuous disclosure filings with Canadian securities regulatory authorities at www.sedar.com. All forward-looking information herein is qualified in its entirety by this cautionary statement, and Copper Fox disclaims any obligation to revise or update any such forward-looking information or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results, events or developments, except as required by law.